The Greater Context of the Crisis in Europe

By: Submissions

Michelle Shocked, ‘Over the Waterfall,’ Arkansas Traveler

‘Petitio principii,’ which is in part believing whatever makes you an easy buck, is, after male libidinal drive, the most powerful force in the human condition.’

      In two years or more of reading Market Oracle on a daily basis, I’ve become much intrigued by an issue of context which is relevant, at this second, in respect of Whatever on Earth is Going on in Europe. This issue of context is that many of the writers published here are what I think may fairly be termed ‘end-game merchants’: they’ll ‘drive’ a system/situation relentlessly in pursuit of profit. What intrigues me is whether they quite comprehend that there are Points of No Return beyond which systems crash totally and permanently?

      Now, that is strictly a Big Picture Question, and perhaps not even appropriate to Market Oracle; but a sub-issue – W. o. E. I. G. o. i. E. -- clearly is relevant here. (Please pardon the rough edges. My gig is The Big Picture (details upon request), and I know altogether too little about the technicalities of trading.) Here goes:

I begin to comprehend that The Powers That Be can and will anoint into existence a bank. That bank will print a very very great deal of money; buy (toxic) assets with that money; and sequester those assets. Then, the theory goes, the Governments responsible for the debacle in the first place will, over a very considerable period of time, ‘dig themselves out.’ I made pro’s and cons columns as I analysed the likelihood of the success of this digging-out. Here’s what I got:

Pro’s:

One: okay, people are resourceful, and will rise to meet the challenge, and might indeed succeed if enough time is gained by The Strategy.

Two: the economies of Brazil and India and China and some other nations may give considerable leverage to the project.

Cons:

One: why would anyone believe this Theory? This is a moment in history at which the system gives all but free reign to (a) ‘semi-sociopaths’ (at the top of the heap), and (b) dangerous but disciplined drones (further down the heap). Never in human history has such a state existed, and removing these clowns from power would require carefully considered and concerted action; but Ordinary People seem set to sit on their couches in the high beams of their plasma screens until they are road kill.

Two: the crisis has resulted in everything not in the spotlight being plunged into inky darkness. The Greater Context remains, and it is: peak oil, peak soil, peak water, peak people; militarism, general environmental degradation/climate change (whether it’s us or not), baby-boomer impact on finances, and what I call ‘social incoherence,’ which I’m sure enough that readers here will comprehend. Note also that the prevailing cornucopian social perspectives, which are subjective not objective – that is, they’re wrong -- will result in ghastly misjudgements of possible solutions to all these problems.

Three: the digging-out would theoretically take place in an environment (global/European/third world/whatever) of even more regulation and ‘fulfilment of aspiration.’ The strengthening of environmental standards, human rights, and climate-change regulations, in China are a good example – and let me make it clear that I’m arguing neither for nor against these things at this point, just noting that they will impinge on the digging-out process.

Four: Wild Cards: the Wild Cards are destabilisations that will almost certainly result in The Process of It All: China, if its economy tanks? Saudi Arabia? movements like the OWS and the Arab Spring? Al-qaida? Note that this doesn’t even countenance serious unrest in the west.

      The digging-out project will fail. Let’s discuss other options.

Mark Blair

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